Section 45(5) - Capital Gains on Transfer by way of Compulsory Acquisition of an Asset

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..... he Central Government or the RBI. when the central government pays this above compensation, capital gains may arise. Such Capital Gains are chargeable as income of the previous year in which such compensation or part thereof, was first received. * The capital gains arising from the transfer of the capital asset shall be dealt with as under: In respect of: Original Compensation * Taxable in t .....

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..... pensation. Death of the transferor * It is possible that the transferor may die before he receives the enhanced compensation. In that case, the enhanced compensation or consideration will be chargeable to tax in the hands of the person who receives the same Notes: * Litigation expenses incurred to obtain the enhanced compensation are deductible from enhanced compensation. * Interest on c .....

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